Robinhood opens doors to crypto-backed preferred stocks

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Robinhood shared that the company just leveled up its trading game by adding Strategy’s trio of preferred stocks, STRC, STRK, and STRF, to its platform.

This move is a pretty big leap beyond the usual common stocks, ETFs, and options that the retail trader playground is used to.

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Crypto-backed securities

Preferred stocks, that curious hybrid creature, now get their moment in the spotlight on one of the most popular retail trading apps out there.

You may or may not know, but preferred shares aren’t your everyday common stock, they’re like the VIP guests at the shareholder party.

They usually pay fixed dividends, have priority over common stock in claims, but don’t get to vote on company drama.

Robinhood’s choice to adopt these asset-backed securities signals a widening appetite for richer, more complex investment flavors among its users.

Trinity

STRC hit the market with a $2.5 billion IPO swagger, followed by a $4.2 billion at-the-market sale.

Unlike your typical stock, it pays a variable monthly dividend designed to keep its price hovering near $100, basically moonlighting as a bitcoin-backed money market alternative.

It’s the financial equivalent of a Swiss Army knife, a little security, a bit of crypto flair, and a fixed-ish income.

Then there’s STRK, which carries a really nice 8% fixed dividend. But holders can convert STRK into common stock if Strategy’s share price rockets to $1,000. It’s like holding a golden ticket that can transform based on market magic.

And don’t forget STRF, the rebel with a 10% fixed dividend that can escalate up to 18% if dividends get missed.

Backed by a $2.1 billion issuance program, this one is the high-yield daredevil of the bunch, built for those craving serious income with some risk seasoning.

Crypto income

What do these additions tell us? Robinhood is clearly responding to rising retail demand for higher-yield, crypto-asset-backed securities.

Investors are hungry for new ways to diversify beyond traditional stocks, dipping toes into crypto-related income sources without the legendary volatility of the underlying tokens.

In short, Robinhood is waving the flag for preferred stocks backed by crypto assets, adding fresh spice to its product buffet and letting retail traders play in a slightly more sophisticated sandbox.


Disclosure:This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Kriptoworld.com accepts no liability for any errors in the articles or for any financial loss resulting from incorrect information.

András Mészáros
Written by András Mészáros
Cryptocurrency and Web3 expert, founder of Kriptoworld
LinkedIn | X (Twitter) | More articles

With years of experience covering the blockchain space, András delivers insightful reporting on DeFi, tokenization, altcoins, and crypto regulations shaping the digital economy.

📅 Published: October 4, 2025 • 🕓 Last updated: October 4, 2025
✉️ Contact: [email protected]

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